Jio's Akash Ambani says services, not tariff hikes, to drive revenue as record IPO nears

Jio wants higher revenue per customer without making tariff increases its main growth tool. Akash Ambani said the company can raise prices, but prefers offering customers additional services and charging for them. This approach could increase customer spending while preserving Jio's relatively low data pricing.

The strategy covers three growth engines: mobility, home broadband, and enterprise and international services. Jio also expects services outside its licensed telecom business, such as a voice-AI feature, to support growth. Its technology platform connects 533.3 million customers and carries more than 60% of India's wireless data traffic.

Jio's current data charge is about Rs 4.9 per gigabyte, below the industry average of Rs 7.5. Monthly data use is already 43.7 GB per customer. Ambani gave no tariff-increase timeline. Instead, Jio is betting that wider service adoption can lift revenue and possibly push its 53.3% EBITDA margin higher.

An initial public offering, or IPO, is when a company offers shares to public investors for the first time. The sale can raise money for the business, while the shares begin trading publicly. Jio Platforms is offering new shares, so the proceeds will go to the company rather than existing shareholders selling their holdings.

Jio set a price band of Rs 1,065 to Rs 1,119 per share. It plans to issue up to 27 crore new shares, equal to about 3% of existing capital. At the top price, the offer would raise about Rs 30,213 crore. There is no offer-for-sale component.

That amount would exceed Hyundai Motor India's Rs 27,870 crore share sale in October 2024, previously India's largest. Jio's implied market value is about Rs 10.3 lakh crore. Bidding is scheduled for October 21 to 23, with trading expected to begin on October 28. Proceeds will prepay Reliance Jio Infocomm borrowings and support general corporate purposes.

Jio is a vast telecom and digital-services business. Reliance Jio Infocomm served 533.3 million customers at June-end, including 284.9 million 5G users. Jio said this was the largest 5G customer base outside China. Its network carries more than 60% of India's wireless data traffic.

Customer usage is also substantial. Average monthly data consumption reached 43.7 GB in the first quarter of FY27. Average revenue per user rose to Rs 215.6 a month. Jio charges about Rs 4.9 per gigabyte, below the industry average of Rs 7.5. These figures show both the scale of usage and the revenue generated per customer.

Jio's IPO offers up to 27 crore new shares at Rs 1,065 to Rs 1,119 each. At the top of the band, it would raise about Rs 30,213 crore. That price implies a market value of about Rs 10.3 lakh crore, making it India's largest planned IPO.

Average revenue per user, or ARPU, measures the average revenue a telecom company receives from each customer during a period, usually a month. It helps investors compare customer value, pricing and service use. A growing ARPU can raise revenue even when customer numbers grow slowly.

Jio reported ARPU of Rs 215.6 a month. That figure reflects revenue spread across its customer base, rather than the exact bill paid by every person. Jio also reported average data use of 43.7 GB monthly and a data charge of about Rs 4.9 per gigabyte. Customers may use different plans and services, so these measures are not identical.

ARPU matters because Jio serves 533.3 million customers. Small changes per customer can therefore affect total revenue substantially. Jio wants to improve this measure mainly by selling more services, including broadband, enterprise offerings and international services, while keeping tariff increases as an available but secondary lever.

If Jio sells more digital services, it could increase revenue without depending mainly on higher basic tariffs. Customers might pay for broadband, enterprise services, international offerings or new digital tools. This would give Jio more ways to earn from its large customer base while keeping data prices comparatively low.

The key mechanism is additional paid usage. Jio already serves 533.3 million customers and has 28.6 million fixed broadband users. Ambani also mentioned services outside licensed telecom, including a voice-AI feature. Such offerings could add revenue beyond data connectivity, while the existing network and technology platform support delivery.

The article says these services could push Jio's EBITDA margin above its current 53.3%. Customer bills could increase for people who choose extra services, but the article does not predict the size of any increase. It also gives no tariff timeline. Jio therefore appears to be pursuing broader spending per customer rather than simply charging more per gigabyte.

Jio entered India's telecom market in 2016 and changed the economics of mobile data. The article indicates that telecom spending per user, as a share of India's per-capita income, roughly halved to about 1% since launch. Jio now charges about Rs 4.9 per gigabyte, below the industry average of Rs 7.5.

The lower cost was accompanied by heavy data use. Customers average 43.7 GB each month, and Jio carries more than 60% of India's wireless data traffic. The company also reports 284.9 million 5G customers. These figures show how central mobile data has become to Jio's business and India's connectivity market.

The article does not provide historical mobile-speed figures or a before-and-after price series. Established industry context is that Jio's launch accelerated affordable 4G adoption, but that broader claim is not quantified here. The source directly supports lower spending, low current data pricing and much higher present-day usage, not a precise speed comparison.

A telecom company builds infrastructure, acquires spectrum and uses both to connect customers. It then earns money through mobile plans, broadband, enterprise connectivity and other digital services. More subscribers, higher usage or more paid services can raise revenue, provided prices cover network and business costs.

Jio's operating system illustrates the mechanism. Its infrastructure includes 3,60,537 towers and 26,800 MHz of spectrum. The network connects 533.3 million customers and carries more than 60% of India's wireless data traffic. Revenue comes from customer payments, including an average Rs 215.6 monthly revenue per user, plus other services.

Operating profit remains after costs such as network operations, staff, technology and other expenses. Jio reported EBITDA of Rs 76,225 crore in FY26, with a 53.3% EBITDA margin in the first quarter of FY27. More traffic alone is not enough. Jio must convert usage and infrastructure into paid services efficiently, while expanding broadband and enterprise demand.